A significant majority of the retail crowd believes that the price of Bitcoin will exceed $90,000 in the near future, which would turn the year-to-date return from negative to positive. However, it remains to be seen whether the market will follow this prediction.
According to Santiment, a firm that analyzes social media posts, the crowd's expectations are heavily skewed towards a price above $90,000, with mentions of lower price ranges being dismissed as fear, uncertainty, and doubt. The crowd's optimism is likely driven by the recent recovery from the February low of around $60,000, as well as the resilience of Bitcoin in the face of various global challenges.
Nevertheless, Santiment warns that this bullishness could be a reason to exercise caution, as overly positive social sentiment can often precede a bearish market performance. This phenomenon is not unique to the cryptocurrency market, as contrarian traders in traditional markets also use sentiment gauges to inform their decisions. In fact, the recovery rally of Bitcoin has already stalled this week, with prices pulling back to $77,000 from highs above $79,000 on Monday, leaving many to wonder if this is just a pause or the start of a broader reversal.